The most recent reports from the twelve districts of the U.S. Federal Reserve suggest that economic activity continued to expand gradually in July and early August across most regions and sectors, according to data discussed in the Weekly Chemistry and Economic Report from the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com).
Nine of the twelve districts reported either modest or moderate growth, and most districts reported increases in retail sales and improved real estate markets. However, many districts reported some softening in manufacturing, the ACC report said.
In addition to the Fed’s district information, the report also discusses the July 2012 Resin Production and Statistics, which was released last week. According to the ACC, U.S. production of major plastic resins totaled 6.5 billion lb during July 2012, a decrease of 0.7% compared to the same month in 2011. Sales and captive (internal) use of major plastic resins totaled 6.7 billion lb during July 2012, an increase of 5.8% from the same month one year earlier, the ACC report adds. Year-to-date sales and captive use was 43.9 billion lb, a 1.8% increase as compared to the same period in 2011.
Also last week, petrochemical production in the U.S. Gulf Coast was affected by the shutdown of oil and gas production on as many as 505 platforms as Hurricane Isaac moved through the area. Among the chemical products most affected were styrene, ethylene oxide, low-density polyethylene (LDPE), butadiene and styrene-butadiene rubber. The share of natural gas production affected by the hurricane was significantly lower than for storms in past years, because of the increased production of natural gas from shale deposits outside the Gulf of Mexico area.
The ACC report also said data from the Conference Board suggest that consumer confidence, which had improved in July, unexpectedly declined in August. The Index fell 4.8 points, more than erasing the gains from the previous month, to 60.6 (1985=100), the report said, its lowest level since November 2011 and actually at near-recession levels.